Thursday, July 29, 2010

No Fee? No More?

The end of the no fee season is back upon us. There has been a major shift in the rental market here. With rents rising once again, owners and managements paying a month's rent towards the broker's fee are few and far between. Properties with solid location are in short supply and the demand is high. If you are looking for a "no fee" apartment in this city over the next two months, you may as well go and take the course for your real estate license. At least then, you will have access to the proper databases to search efficiently. Properly priced apartments are renting within a day of hitting the market, if they even make it to the market right now!

The one month "OP" (owner paid) commission rate is going to be a last resort for properties that are not renovated, in fringe areas or are sitting on the market for too long for various other reasons. The best priced, good quality, spacious and prime location properties will be offered and able to be secured through a broker in this market. I have seen this trend for the past five years with the rental market here. Usually this happens earlier in the year around the spring rush. The fact that it is happening so late in the rental season this year, indicates that this may be a cold winter for renters. Traditionally, this is the time of year where the "OP's" begin to appear. To see them disappearing is a sign that the "no fee" market may be crashing for a long period.

Tuesday, July 20, 2010

The Fall of the Wall?

Here in NYC, we live in a housing market that already has low supply and high demand. Thereforre the rents are above average when compared to the rest of the country. To offset this and find a way to reap the benefits of living in Manhattan, many renters when looking for doorman buildings, have resorted to putting up temporary pressurized walls to create second or third bedrooms. This makes a $3500 one bedroom now affordable for two young professionals who can really only afford $1700 per month in rent.

This will soon be a thing of the past. This year, many landlords are no longer allowing walls to be erected and many are even going so far as to having existing walls removed. What many are being told, which is in compliance with a Department of Buildings code, is that they can only put up a partition or shelving unit which results in obviously, less privacy. The effect of this is massive, as many new tenants in the city rely on doorman buildings for the obvious benefits of security, as well as the convenience of on site staff for everything from repairs to package/dry cleaning reception. Few are the new hires who can come right out of college and afford a $3500 one bedroom at 40 times the monthly rent on thier own.

Many renters are now being forced to consider other areas of the city such as Washington Heights, Harlem, Long Island City and Brooklyn in order to get the same luxury at a more affordable price. The old "boundaries" of what was once deemed a safe area to live are being pushed further and further outwards and upwards with each week.

Monday, July 12, 2010

Rents are rising in Manhattan again!

I have watched the markets around the country plummet and not yet recover over the past six years. Here in Manhattan, that is just simply not the case. There is such an unbalanced set of supply and demand here that you can not imagine until you have lived here.

There are more people than there are apartments to rent. I got a client this weekend who called me on a three bedroom uptown. Upon talking to her I realized that she was actually trying to find enough space for FIVE people to share for under $3000! There are serious gaps in peoples perceptions of the market here.

Take a look at these statistics.

The link above is great if you are thinking of moving into an apartment in Manhattan. I am quite sure many people feel that they can try to do it on their own without a broker. Do realize that it is possible, but you will have a long winding road. Even with a broker it is tough if he or she has no relationships or even worse, a bad one with the managing agents or landlords. There is very little time for the good apartments to be viewed and secured in this current market state. You must be pro-active and not reactive when trying to find a place during this time of year. There is only going to be less to choose from with each day and many young agents don't realize the cycle of turnaround.

I hope that these facts are helpful in your securing a new home. If you need any help, I am here to guide you home!

Saturday, July 10, 2010

RENTAL ALERT!!! Vacancy rates below 1% again!

After a much needed respite, I am back!

This is a busy season as within seconds of posting an ad, I proceed to get calls for twelve hours straight from 11:30AM-11:30PM yesterday. There are tons of people looking and not much selection. There is also very little time to deliberate as I have been showing in groups. If you don't want it, there are four more people lined up outside who will take it.

The rents are rising and the landlords are not offering concessions as much as they were in the past years. This is the time to find a good broker and go out looking during the week. You will maximize your chance of viewing the right place and securing it. Viewing on the weekend can leave you applying for an apartment only to find out that someoone else is signing leases on it that Monday.

Many of my clients can attest, that you will be glad to pay the fee for a lower monthly rent. Anything that is offered as a "no fee" during this time of year, is something that you are really just paying the fee back to the landlord in the form of a higher monthly rent.